Leveraging on its extensive experience in the advising, arranging and financing of infrastructure projects in Nigeria, Rand Merchant Bank Nigeria (RMB), is set to finance a new set of projects in the maritime, water and power sector.
This move, the leading African investment bank says, is aimed at solidifying its market footprint in Africa’s largest economy where it is positioning to support the expected significant private and public sector investment in the country’s infrastructure development across multiple sectors.
Ato Gyasi, Co-head of RMB’s West Africa Investment Banking Division and Head of Infrastructure Finance West Africa, disclosed this in discussions during the just concluded ALP Seminar series – Fourth Edition, tagged; the role of Infrastructure and Project finance in developing Nigeria’s economy: Challenges, Strategies and Solutions maintained that despite the difficult business environment, investors are still bullish about Nigeria.
“Infrastructure investors are clearly willing to enter the Nigeria market but they also want to understand the dynamics in the market which, in Nigeria, are constantly evolving,” Gyasi said, adding that the whilst the government at various levels has some effective infrastructure regulations, they need to be implemented efficiently and consistently to support effective investor participation into the country.
“Infrastructure projects can only be successfully executed when government creates and implements an enabling environment for such projects to be delivered,” he stated, adding that recent trends have made it imperative for the government to dismantle all existing bottlenecks in the sector.
“Infrastructure is expected to boost the economy, and with such a large population scrambling for a handful of efficient services, the opportunities in the country span across the various sectors of the economy,” Gyasi added.
On whether the bank has suffered any setback in making returns from any previous project embarked on, the infrastructure finance expert noted that while market forces have sometimes slowed the market, Nigeria remains a key investment destination considering the infrastructure opportunities available which are driven primarily by a growing population and the, well documented, large infrastructure deficit.
RMB has extensive track record across the continent in advisory, structuring and funding, notable transactions include I.H.S. (Nigeria), Lekki-Epe Expressway (Nigeria), Cenpower (Ghana), Angola Domestic Submarine Cable(Angola) and Eskom Kusile Power Plant(South Africa).
This year ALP is collaborating with the United Kingdom’s Department of Trade and Industries (UKTI) as well as the International Project Finance Association (IPFA).
Stakeholders at the conference unanimously agreed that in the advent of crashing Oil prices, President Buhari’s administration must make it a priority to raise the country’s infrastructure spending in a bid to boost Nigeria’s Gross Domestic Product.
